Steve’s breakdown: We just reported on AvalonBay earlier this month and now this acquisition of 60 apartment communities, containing 20,089 apartment homes. Add that to the 203 other communities they already own and that’s a lot of advertising projects!

ARLINGTON, VA: AvalonBay Communities, Inc. (NYSE: AVB) announced today that it and Equity Residential (NYSE: EQR) have completed their previously announced acquisition (“Archstone Acquisition”) of the assets and liabilities of Archstone Enterprise LP (“Archstone”) from Lehman Brothers Holdings, Inc., which consist principally of a portfolio of high quality apartment communities in major markets in the United States. AvalonBay acquired approximately 40% of Archstone’s assets and liabilities and Equity Residential acquired approximately 60% of Archstone’s assets and liabilities.

AvalonBay’s portion of the completed transaction is valued at approximately $6.5 billion. In addition to assuming approximately $3.9 billion of consolidated and unconsolidated indebtedness, AvalonBay paid $669 million in cash and delivered 14,889,706 shares of AvalonBay common stock, valued at $1.9 billion as of the market’s close on Wednesday, February 27, 2012.

As a part of the Archstone Acquisition, AvalonBay acquired 60 apartment communities, containing 20,089 apartment homes, of which 5 communities are under construction and are expected to contain 1,198 apartment homes upon completion; 5 parcels of land, which if developed as anticipated, are expected to contain a total of 1,414 apartment homes; interests in joint ventures (which may be acquired on a deferred closing basis) which own 12 apartment communities, containing 2,851 apartment homes; and a 40% ownership interest in a joint venture arrangement with Equity Residential that contains certain non-core assets and residual liabilities that will be jointly managed until disposition or resolution.

Commenting on the Acquisition, Tim Naughton, AvalonBay’s CEO and President said, “Our acquisition of assets from Archstone represents a rare opportunity to expand our presence across our markets with a portfolio that is complementary on three important dimensions – market concentration, submarket positioning, and price point. In addition, this acquisition provides scale benefits in terms of brand penetration and G&A leverage, which we believe will strengthen our competitive position over time and create long-term value for shareholders.”

About AvalonBay Communities, Inc.

As of December 31, 2012, the Company owned or held an interest in 203 apartment communities containing 59,391 apartment homes in nine states and the District of Columbia, of which 23 communities were under construction and five communities were under reconstruction. AvalonBay is in the business of developing, redeveloping, acquiring, and managing apartment communities in high barrier-to-entry markets of the United States. More information on AvalonBay, an S&P 500 listed company, may be found on AvalonBay’s website at http://www.avalonbay.com.

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